Many European countries including France have adopted the system of vat or value added tax to tax services and goods, and if you plan to start a small business in this country then knowing vatcontrol.com all about french vat can help you run your business efficiently. Even if you have other offices in different EU countries, learning about vat in France will help you file vat returns and apply for vat refunds within the prescribed time period.
France has several specific vat rules in case you want to do business in that country without forming any local company. You can get vat registration along with a vat number in France as being a foreign company. Vat in France is called TVA or Taxe sur la Valeur Ajoutee and it is managed by the Direction Generale Des Douanes Et Droits Indirect. If you apply as a foreign company then there is no vat threshold or limit that needs to be achieved before receiving your vat number.
If you have another office in another eu country like the UK, Sweden, Germany, Spain, Greece, Poland, or other country that follows vat then you can now import goods from France whilst claiming back any vat that might have already been paid in France. However, before you decide to rush in to fill up the vat form and apply for a vat reclaim, it is vital that you have thorough knowledge on uk vat, eu vat as well as french vat so you do not find yourself on the wrong side of the vat laws in any country.
You can use the expertise of a knowledgeable vat agent or consultant that knows all about vat rules in countries which do business with your very own. It is possible to alternatively hire French agents to handle all of your vat issues in France including filing of vat returns and claiming vat refunds. In order to not pay vat in France in the first place then you can also submit your local country vat no while purchasing products or utilizing services. In case you have been charged TVA or French vat then you will need to make an application for vat reclaim after fulfilling all documentary requirements including showing the vat certificate of your country in France.
However, it is vital that you get vat registered in your own country before you apply for a vat refund in France. The standard vat rate in France is 19.6% while the reduced vat rates are 5.5% and 2.1% dependant upon the classification of goods and services in France. There are also certain services and goods that are vat exempt and knowing the correct vat rate should enable you to cut costs for your business in the very first place. While most of Europe now uses a common currency, i.e. the Euro, UK and some other countries within the EU still trade in their currency, although you will get your vat refund in France only in Euros.
If you are planning to start importing goods from France or utilize services in the country then you can easily get your own vat number in France by registering as a foreign company. You will need to file regular vat returns however in return will also be in a position to reclaim vat which may have already been paid in France. Knowing all about french vat will help you run your organization efficiently and reduce your costs that otherwise could have increased due to multiple taxation.